Merck KgA has made an offer of $7.2 billion, including assumption of $1.2 billion in debt, to acquire Millipore, a bioprocessing component manufacturer and service provider. The boards of both companies have approved the bid, which constituted a 50% premium above Millipore’s share price.

Said Dr. Karl-Ludwig Kley, chairman of the board of Merck, “This is a combination with an excellent strategic fit, which will allow us to cover the entire value chain for our pharma and biopharma customers, offering integrated solutions beyond chemicals. By combining Millipore’s bioscience and bioprocess knowledge with our own expertise in serving pharma customers, we will be able to unlock value in our chemicals business and transform it into a strong growth driver for Merck. Through this acquisition, we will expand the overall product offering of the Merck Group, using the well-recognized Millipore brand in addition to our own brand.”

Martin Madaus, chairman, president and chief executive officer of Millipore, added, “Over the past five years, we have transformed Millipore into a life science leader by driving innovation, entering new markets, and generating exceptional operational performance. Today’s announcement, which is the outcome of a thorough strategic review process, is a validation of the tremendous value of the Millipore brand and a testament to the value this transformation has created for all of our stakeholders. We are excited to join a high-quality company like Merck as we will gain greater scale and scope in the life science industry. This is a very positive outcome for our employees and customers as we continue to build on our strategy for growth, while maintaining our headquarters in Billerica.”

Several days earlier, Thermo Fisher made an unsolicited bid of $6.0 billion for Millipore, leading the company to retain Goldman Sachs to help find another suitor. Millipore had $1.7 billion in sales in 2009, with 6,000 employees in more than 30 countries. A Merck statement noted that the company expects to save $100 million in “annual cost synergies.” Pending shareholder approval and antitrust clearance, the deal is expected to close in the second half of 2010.